Mills (NYSE:MLS)
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From Jun 2019 to Jun 2024
The Mills Corporation (NYSE:MLS) announced today that it
has signed a binding letter of intent to sell its interest in Vaughan
Mills (Ontario, Canada), St. Enoch Centre (Glasgow, Scotland) and
Madrid Xanadu (Madrid, Spain) to Ivanhoe Cambridge, Inc. for
approximately US$981 million, before transaction costs.
The agreement, which is subject to final approval of both firms'
boards of directors and other conditions, could close as soon as Aug.
31, 2006 for St. Enoch Centre and Vaughan Mills, and as soon as Sept.
30, 2006 for Madrid Xanadu.
The Mills and Ivanhoe each currently own 50% of Vaughan Mills and
St. Enoch Centre. Madrid Xanadu is wholly owned by The Mills. Madrid
Xanadu opened in May 2003, Vaughan Mills opened in November 2004, and
St. Enoch Centre was jointly acquired by The Mills and Ivanhoe
Cambridge in February 2005. The Company expects to realize net
proceeds of approximately $500 million after paying its proportionate
share of costs associated with the projects and the transfer of assets
(including amounts to complete ongoing work at Vaughan Mills and
Madrid Xanadu) and less assumed debt. The transaction values the three
centers at approximately $1.5 billion.
The Mills plans to apply proceeds from the sale to pay down a
portion of its Senior Term Loan with Goldman Sachs Mortgage Company as
Administrative Agent. The consent of lenders under the Senior Term
Loan is required to close the sale and The Mills is in the process of
seeking such consent.
The Mills Corporation
The Mills Corporation, based in Chevy Chase, MD, is a developer,
owner and manager of a diversified global portfolio of retail
destinations including regional shopping malls, market dominant retail
and entertainment centers, and international retail and leisure
destinations. It currently owns 42 properties in the U.S., Canada and
Europe, totaling 51 million square feet. In addition, The Mills has
various projects in development, redevelopment or under construction.
The Mills is traded on the New York Stock Exchange under the ticker:
MLS. For more information, visit the Company's website at
www.themills.com.
Ivanhoe Cambridge
Ivanhoe Cambridge is a recognized leader in the Canadian real
estate industry. It is one of the country's pre-eminent property
owners, managers, developers and investors. The Company focuses on
high-quality shopping centres located in urban areas. Beyond its
strong Canada-wide presence, the Company is also active in the United
States, Asia and Europe - where it partners with prominent real estate
entities. Its real estate portfolio consists of more than 43.2 million
square feet of retail space and includes over 65 regional and
super-regional shopping centres. As at December 31, 2005, the market
value of Ivanhoe Cambridge's assets reached CAD $9.3 billion.
Headquartered in Montreal, Quebec, Canada, Ivanhoe Cambridge is a
principal real estate subsidiary of the Caisse de depot et placement
du Quebec, the largest institutional fund manager in Canada. Amongst
its shareholders, the Company also counts four prominent Canadian
pension funds. The Company's Internet address is
www.ivanhoecambridge.com.
Statements in this press release that are not historical -
including, among other things, as to the Company's completion of the
transaction with Ivanhoe for some or all of the centers subject to the
parties' letter of intent, on the expected terms or in the expected
time frames or at all, the expected use of proceeds, the consent of
the Company's lenders, and the exploration of strategic alternatives,
may be deemed forward-looking statements within the meaning of the
federal securities laws. Although The Mills Corporation believes the
expectations reflected in any forward-looking statements are based on
reasonable assumptions, the Company can give no assurance that its
expectations will be attained and it is possible that our actual
circumstances and results may differ materially from those indicated
by these forward-looking statements due to a variety of risks and
uncertainties including our ability to obtain the necessary consents
from the parties' boards of directors and from the Company's lenders
and our ability to pay down portions of our Senior Term Loan as
opposed to using certain of the proceeds to satisfy other cash
requirements. The Mills Corporation undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The reader is
directed to the Company's various filings with the SEC, including
quarterly reports on Form 10-Q, reports on Form 8-K and its annual
reports on Form 10-K for a discussion of such risks and uncertainties.